Authorized Economic Operator (AEO) Certificate

Benefits of AEO Certification


The AEO (Authorized economic Operator) programme, the importer and exporter are being issued a certificate based on three-tier certification i.e. AEO T1, AEO T2 and AEO T3, where AEO T3 is the highest level of accreditation and with most benefits. All three tiers provide for varying and incrementally increasing level of facilitation to the status holder. There is one more category of AEO- LO that covers all other entities in the supply chain other than the importers and exporters.

Recently, the AEO T1 processing was rationalized via new circular 26/2018 - customs. The latest circular has cut down on the Annexure required for AEO T1 certification from earlier 7 to the now 2. In the present the setup, the AEO T1 file can be approved at the Customs Zonal level. This has completely eliminated the time that was wasted in transit of application from zonal offices to DIC (AEO HQ).

The AEO Programme enables Indian Customs to enhance and streamline cargo security through close cooperation with the principle stakeholders of the international supply chain viz. importers, exporters, logistics providers, custodians/terminal operators, custom brokers and warehouse operators.


Benefits of AEO certification

Priority in processing and clearance of goods.

Inclusion of Direct Port Delivery of imports for AEOs.

Inclusion of Direct Port Entry for factory stuffed containers meant for export by AEOs.

Self-declaration of SION under Para 4.07A of FTP 2015-20 for AEO Exporters in cases where SION is not notified.

Provision of Deferred Payment of duties – delinking duty payment and Customs clearance for AEO T2 and AEO T3

Fast tracking of adjudications and refunds including IGST refunds and disbursal of drawback.

Benefits of Mutual Recognition Agreements with other Customs Administrations for AEO T2 and AEO T3.


AEO-T1 status holder are eligible for 24/7 cargo clearance, exemption from payment of merchant overtime fee, separate earmarked space in custodian’s premises, and facility of Direct Port Delivery (DPD) for import and export consignments. Further, T2 and T3 AEO holders are eligible for additional benefits such as facility for deferred payment of customs duty, facility to paste MRP stickers in their premises, timely grant of refund/rebate of indirect taxes, exemption from submission of bank guarantee and many more.


Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

How to Choose a product for export business

How to send export samples to foreign buyer? Tips to send samples to foreign buyer

Export marketing : How to get order

Disadvantages of Letter of credit (LC) for Exporter

Commercial risks and solutions under Export Business 

 Political risks in International Trade 

Risks arising out of foreign laws in Import Export Business  

Cargo risks under Imports and Exports    

Types of Policies to cover credit risks in Import Export Trade  

Causes influencing price of export goods in Export Trade  

Credit risks and solutions under International Business 

Foreign exchange fluctuations risks and solutions in import export Business  

How to overcome the credit risk in an export business?  

Does exchange rate of currency effect export business? 

Risks and solutions in Export Business

What is the difference between BAF and CAF 
What is Tail Gate exam hold in US import clearance 
How to make DA mode of payment safe 
How to make delay in delivery of Shipment?   
What is Provisional Assessment in Import formalities in India?

What is said to contain in Bill of Lading. 
What is Manifest Hold by US customs on import 
What is MET exam in US import customs clearance 
What is legalization of documents by embassy? 
What is LET EXPORT order in export trade? 
What is Line number in IGM 

How is IGST calculated under Imports?
How is IGST rate on imports treated? 

GST and e-Commerce Business, FAQ 

Definition of E-Commerce under GST 

TDS under GST, Frequently Asked Questions

Import under EPCG after GST

GST on imports by EOUs and SEZs

Changes of operation of SEZ

Does CVD exists under project imports?

Baggage clearance after GST implementation

Meaning of Bill of supply under GST

Base year revenue under GST

Appellate Authority for Advance Ruling (AAAR) under GST

Anti-profiteering measure under GST


jayadevan: can apply AEOT3 directly without applying AEO1? or once got AEO1, then it will issue AEO3?

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers